In a recent development, the arbitration award between Yonghui Supermarket and individuals such as Wang Jianlin and Sun Xishuang has officially entered the court’s enforcement phase, involving a total amount of over 3.639 billion yuan (RMB). Yonghui Supermarket has been posting losses for the past 5 years, with its stock price dropping by approximately 26% since the beginning of this year.
On the evening of May 21, Yonghui Supermarket announced that the arbitration ruling in the dispute involving Dalian Yujin Trading Co., Ltd., Wang Jianlin, Sun Xishuang, and Dalian One Group Co., Ltd. has taken effect. The court has decided to file for enforcement, with the amount in question being the remaining share transfer price of 3.639 billion yuan, along with associated default penalties, legal fees, and arbitration costs.
Yonghui Supermarket stated that there is uncertainty regarding the amount that will be recovered through the enforcement of the case, making it temporarily difficult to determine the impact on the company’s current or future profits.
The dispute originated from the final payment of the Wanda Commercial Management equity transfer more than two years ago, for which Wang Jianlin assumed joint guarantee responsibility.
According to public reports, on December 8, 2023, Yonghui Supermarket signed an agreement with Dalian Yujin to sell around 389 million shares of Wanda Commercial Management, with a transfer price of about 4.53 billion yuan, to be paid in eight installments.
On July 26, 2024, Yonghui Supermarket signed a supplementary agreement with Dalian Yujin, Wang Jianlin, Sun Xishuang, and One Group. The supplementary agreement stipulated that the total remaining share transfer price for this transaction was 3.839 billion yuan, to be paid in eight installments. The fourth installment, amounting to 300 million yuan, was scheduled for payment by September 30, 2024.
As per the agreement, Wang Jianlin, Sun Xishuang, and One Group were to provide guarantees for the payment of the remaining transfer price. In September 2024, Dalian Yujin failed to fulfill its payment obligations as agreed, and Wang Jianlin, Sun Xishuang, and One Group did not assume the guarantee responsibility. Subsequently, Yonghui Supermarket filed for arbitration with the Shanghai International Economic and Trade Arbitration Commission.
On April 13 this year, the Shanghai International Arbitration Center issued a relevant arbitration award. By May 6, the deadline for compliance with the award had passed, yet Yonghui Supermarket had not received the amounts owed by the respondents. Following this, Yonghui Supermarket applied for enforcement with the court to dispose of the preserved assets of the respondents.
Public records indicate that Dalian Yujin is a subsidiary of One Group, with Sun Xishuang, the controlling shareholder of One Group, having a long-standing collaborative relationship with Wang Jianlin in various sectors including real estate and tourism.
Additionally, it is noteworthy that Yonghui Supermarket is facing the pressure of continuous losses for five years, with accumulated losses exceeding 12 billion yuan from 2021 to 2025. The total market value of Yonghui Supermarket at the beginning of the year was 423.8 billion yuan, which has now reduced to approximately 314 billion yuan, with a significant 26% decline in the stock price and market value throughout the year.